Bill > HB3737

This bill amends the Illinois Income Tax Act to create a new income tax deduction for individuals who pay premiums for individual health insurance plans covering themselves or their dependents. Specifically, the bill adds a new provision (subparagraph (NN)) to Section 203(a)(2) of the Illinois Income Tax Act, which allows taxpayers to deduct the premiums paid for individual health insurance plans starting in tax years beginning on or after January 1, 2026. This deduction is designed to help reduce the tax burden for individuals paying for their own health insurance by allowing them to subtract these premium costs from their taxable income. The provision is exempt from certain standard tax calculation rules, which means it provides a straightforward deduction for taxpayers. This change could potentially make health insurance more affordable by providing a tax benefit to individuals who purchase their own health insurance coverage.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3737&GAID=18&DocTypeID=HB&SessionID=114&GA=104